Impact of Budget 2014 on Personal Finance

Updates on personal finance from union budget 2014. 

1. Kisan vikas patra to be reintroduced for planned and unplanned savings.
2. Cheaper housing loan & Tax incentive for LIG – low income group
3. Insurance sector FDI to be hiked to 49% from 26%
4. Introduction of standardised KYC norms across financial sector.
5. Introduction of single demat account for all types of financial transactions
6. PPF limit raised from 1 to 1.5 lakhs
7. A special small saving scheme will be introduced to encourage savings towards education & marriage of girl child.

DIRECT TAXES

1. Income tax exemption limit increased from 2 to 2.5 lakhs for age less than 60 yrs
2. Senior citizen from 2.5 to 3 lakhs
3. Standard deduction limit u/s 80C raised from 1 to 1.5 lakhs
4. Interest on housing loan for self occupied property from  1.5 to 2 lakhs
5. Long term Capital gain on sale of debt mutual fund  increased to 20%
6. Holding period for long term capital gain for mutual funds &shares increased from 12 to 36 months.